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Using ABC, the total manufacturing costs per unit for product SuperPro is:

Using ABC, the total manufacturing costs per unit for product SuperPro is:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using ABC, the total manufacturing costs per unit for product SuperPro is:

Using ABC, the total manufacturing costs per unit for product SuperPro is: * Mictorious Company manufactures two types of Electronic Toy, the Regular and SuperPro. The following data have been obtained: Regular P33 Super Pro Direct material cost per unit Direct labor cost per unit P38 P32 P44 3,000 4,000 Direct labor hours 12,000 Machine hours 2,000 Engineering hours Number of set ups 450 450 5 20 Number of units 8,000 2,200 Currently, overhead costs are assigned to products on the basis of direct labor hours, but the company decided to adopt the ABC method of cost allocation. The overhead consists of the following items: Overhead Cost Item Cost Driver Amount Setup costs Engineering costs No. of setups No. of engineering hours No. of machine hours P250,000 180,000 Machine costs 900,000
Transcribed Image Text:Using ABC, the total manufacturing costs per unit for product SuperPro is: * Mictorious Company manufactures two types of Electronic Toy, the Regular and SuperPro. The following data have been obtained: Regular P33 Super Pro Direct material cost per unit Direct labor cost per unit P38 P32 P44 3,000 4,000 Direct labor hours 12,000 Machine hours 2,000 Engineering hours Number of set ups 450 450 5 20 Number of units 8,000 2,200 Currently, overhead costs are assigned to products on the basis of direct labor hours, but the company decided to adopt the ABC method of cost allocation. The overhead consists of the following items: Overhead Cost Item Cost Driver Amount Setup costs Engineering costs No. of setups No. of engineering hours No. of machine hours P250,000 180,000 Machine costs 900,000
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